When BT announced its changes to include 0870 in packages on Thursday, we wondered if the log-jam had cleared. BT confirmed that it expected implementation of the changes to be imminent, however Ofcom made no comment.
Today we do have a development on a linked issue, but again Ofcom, whilst acknowledging the link, has no further comment to offer.
The 0870 changes depend on resolution of a dispute concerning the termination rates that BT pays other operators who terminate calls to 0870 numbers (the "0870" case). BT announced a reduction in these rates so as to comply with the proposed Ofcom requirement for 0870 calls to be charged as for geographic calls, which was disputed. The Ofcom resolution for this case used a method used in another case, which concerned termination rates on calls to mobiles.
As this "mobiles case" had been appealed, Ofcom could not proceed to implement the proposed resolution of the "0870 case". The "mobiles case" was heard by the CAT, which ruled the method used to be invalid. The CAT subsequently gave guidance on how the method should be altered.
Today, a new case has been announced -
CW/01008/12/08. This is simply to cover implementation of the resolution of the "mobiles" case" (which had been formally closed), as directed by the CAT.
The assumption was that the method used here could be applied to provide a resolution for the "0870 case", so the log-jam could be cleared. I have been told that there is no indication of any movement in the "0870 case", and that this is only one of a number of issues that are preventing any further action being taken with the implementation of the new 0870 regulations.
It could be that the CAT has only directed how the specific elements of the "mobiles case" should be resolved, rather than offering an alternative methodology that may be applied more broadly. (This is my speculation, I could not obtain confirmation of this point.) If I am right, then Ofcom could be said to be well and truly scr**ed, unless it can extrapolate what the CAT would regard as an acceptable method for other cases from the resolutions directed in the "mobiles case".
If the other telcos are determined to obstruct progress with the 0870 changes, as must be clear, then any attempt to press a resolution of the 0870 termination rates case would take Ofcom straight back to the CAT.
A circulated update message on 6 October 2008 stated, "Ofcom aims to publish a further statement on implementing any changes to 0870 policy by the end of the year."
Ofcom's updated work plan has a statement scheduled for Q3 (i.e. by the end of January 2009).